In today’s briefing:
- Post-Ban Short Play Idea: TIGER Top 10 ETF Rebal in June
- HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains
- EquiLend Gets in on Korea’s Securities Lending Digital Shift: Trading Impact
- Insider Selling at Rainbow Robotics
Post-Ban Short Play Idea: TIGER Top 10 ETF Rebal in June
- POSCO Holdings and Samsung SDI stand out for shorting, as both were hit hard by the EV battery chasm. With June rebal looming, they’re likely getting the boot.
- Samsung Biologics and Hanwha Aerospace could replace them, with a large float cap gap and strong price momentum, making it unlikely for the gap to flip by May.
- As June rebalancing nears, volume could drop, increasing passive impact. With shorting back, passive flow intensity may rise, leading to significant price action.
HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains
- KKR & Co (KKR US) is looking to raise around US$160m via selling some of its stake in HD Hyundai Marine Solution (443060 KS) .
- KKR had come out of its IPO linked lockup in Nov 2024 and had earlier tried to launch a deal in Dec 2024. Hence, the selldown is very well flagged.
- In this note, we will talk about the placement and run the deal through our ECM framework.
EquiLend Gets in on Korea’s Securities Lending Digital Shift: Trading Impact
- The remaining third of Korea’s local securities lending market is moving to digital, potentially sparking a whole new trading landscape.
- Integrating EquiLend with local platforms boosts post-short-selling volume and shifts a large portion of manual trades into the digital space.
- This could spark new algo trading strategies, and with short selling resuming March 31, we’ll need to track how the flow evolves.
Insider Selling at Rainbow Robotics
- On 19 February, it was reported that Rainbow Robotics’ VP Kim In-Hyeok sold 30,000 of his 55,000 shares (0.28% stake) on the 14th. Disposal price was 413,796 won per share.
- At end of 2024, Samsung Electronics announced that it will become the largest shareholder of Rainbow Robotics which has been the key reason why Rainbow Robotics’ share price has surged.
- Despite Samsung Electronics becoming the largest shareholder of Rainbow Robotics, the overly stretched valuations could result in higher downside risk ahead. It is trading at P/S of 106x in 2026.
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